The crypto industry faces a tough decision ahead of the U.S. mid-term elections in November 2026, following the defeat of the Clarity Act in the Senate. After investing over $300 million in bipartisan political contributions, crypto advocates are now split on whether to punish Democrats for blocking the bill or maintain their long-standing bipartisan approach.
The Clarity Act, which aimed to provide legal clarity for U.S. crypto companies, was stalled when all Senate Democrats and a few Republicans voted against it. This defeat has angered crypto executives and made the industry more of a partisan issue, according to analysts. U.S. President Donald Trump’s personal crypto ventures further complicated negotiations, as Democrats pushed for stricter rules on officeholders’ crypto dealings.
With nine Democratic senators up for reelection, including former allies like Cory Booker and Mark Warner, the industry is weighing its options. Some executives warn that targeting Democrats could alienate potential future allies, while others argue for rewarding Republicans who supported the Clarity Act. Fairshake, a crypto super PAC, has already spent millions opposing adversaries like Sherrod Brown in Ohio.
Despite the setback, some in the industry believe crypto can remain a bipartisan issue. They advocate for a balanced approach, rewarding pro-crypto candidates without jeopardizing relationships. Josh Riezman of crypto firm GSR suggests the industry will likely refocus on supporting Clarity Act advocates in the coming elections.